SEATTLE, WA—Boeing announced it will temporarily furlough tens of thousands of employees after around 30,000 machinists went on strike, halting production of the 737 MAX and other aircraft. 

CEO Kelly Ortberg informed employees that some would be furloughed for one week every four weeks during the strike. Executives, including Ortberg, will also take pay cuts.

The strike, which began Friday, has disrupted production and delayed deliveries. The machinists' union seeks a 40% wage increase over four years, far exceeding Boeing’s offer of 25%, which was rejected. 

Boeing and the union are resuming contract negotiations with federal mediators.

A prolonged strike could cost Boeing billions, worsen its financial position—already burdened by $60 billion in debt—and potentially harm its credit rating. Boeing has frozen hiring and stopped most parts orders, and its stock is down 40% this year. However, production of the 787 Dreamliner will continue, along with critical safety and support operations.

This story was originally reported by Reuters.